NEW YORK (AP) – Starwood called off a $12.2 billion buyout agreement with Marriott in favor of an offer from a group of investors led by the Chinese insurance company Anbang.
The decision came after Anbang upped its offer for Starwood by nearly $370 million Friday, bringing the total to more than $14 billion.
Starwood, which owns the Sheraton and Westin hotel brands, has to pay Marriott $400 million to end the deal.
Chinese companies have parked a lot of money in U.S. assets in recent years, seeing it as a safe bet.
Last year, China’s Haier Group, the world’s biggest home appliance maker, said it would acquire General Electric Co.’s appliance business for $5.4 billion.